In summary, the Transaction consisted of the Company executing a sale of producing assets in Appalachia (the "Assets") to a Special Purpose Vehicle ("SPV"; DP Lion Equity Holdco LLC) in which Diversified retained a 20% minority interest and operatorship of the Assets. The Transaction generated proceeds to the Company of approximately $200 million, comprised of an Asset Backed Securitization placed at the SPV and a sale of an 80% equity interest in the SPV for approximately $30 million. Proceeds (net of transaction-related costs) were used to repay outstanding borrowings under the Company's Sustainability-Linked Loan (revolving credit facility), resulting in an approximate 12% reduction in net debt, and for general corporate purposes.

The implied valuation of the Transaction represents a multiple of 5.7 times the expected hedged 2024 EBITDA of approximately $35 million. The sold Assets owned by the SPV were previously included as collateral on the Company's Sustainability-Linked Loan and had a PV-10 of approximately $230 million (gross production ~50 MMcfe per day) based on forward looking commodity prices, which resulted in the borrowing base for the Company's revolving credit facility being redetermined to $305 million.